The story of the middle class gaining access to investments

Louis Engel became the first American marketing expert and journalist who managed to explain to millions of people the principle of the stock market operation and taught them how to invest. He was the person who brought middle-income citizens to brokers, significantly expanding the target audience of investment companies. Engel's books on investing have become the best guide for those who want to invest in securities.

Today we will talk about how the talented advertising specialist managed to change the American stock market, and what advice Louis Engel gave to beginner investors.

Louis Engel began his career when he was a student: he worked as an editor for the school newspaper Daily Maroon and at the same time developed several other projects. After finishing his studies, he got a job at the University of Chicago Press, because by that time he had gained enough experience in journalism and public relations. In 1932, Louis's career led him to the position of a reporter in the New York periodical Advertising and Selling, and a year later he became its editor-in-chief.

Editorial work in a number of business periodicals helped the guy to delve into the field of finance and investment. The turning point in Engel's career was an interview with Winthrop Smith, the co-founder of the brokerage firm Merrill Lynch. The famous financier offered Louis the position of a sales promotion manager, but the latter refused, because he just got a job at the Changing Times periodical. Engel soon reconsidered his decision and accepted Smith's offer.

At Merrill Lynch, Louis Engel noticed that brokers were focused on working with billionaire clients, neglecting average-income investors. Then he offered the company a new development strategy based on attracting middle-class assets. The innovative approach maximized the target audience of Merrill Lynch by including people who wanted to invest in stocks but knew nothing about investments.

Engel's first revolutionary act was to launch an ad encouraging everyone to apply for an audit of their personal assets. As a result, the company received such a strong response from the public that it had to expand its staff of analysts. Then Louis Engel took the next brilliant step: he published an article in the newspaper Cleveland Plain Dealer, where he briefly explained the principle of working with securities. At the end of the publication, it was reported that Merrill Lynch was distributing free brochures with information about the stock market. Residents of the country rushed to massively request educational brochures and after studying them, contacted Merrill Lynch with the intention of investing money in stocks.

The publisher Little, Brown 3333 Company invited Louis to write a book that would explain the essence of securities trading in layman's terms. Engel agreed, and in May 1953, "How to Buy Stocks" appeared on the shelves of book stores, becoming a real bestseller. There have been eight editions of the book, and the total number of the copies sold has exceeded 7 million. Engel's recommendations are relevant today.

The most famous tips from the book "How to buy stocks":

- People who save money and keep it at home or bury it in the ground, protect their savings from the most obvious danger – theft. But they are exposed to another risk – the depreciation of money due to inflation.
- An average stock is the most profitable and least risky asset compared to any other type of investment.
- The better a person understands the stock market, the less they trust any forecasts. The most clever response to the question of how the market will behave is as follows: "It will fluctuate". This statement is the only accurate and most truthful of all.
- Nothing is cheaper than the advice of someone who has no right to give advice.

Louis Engel introduced the stock market to millions of private investors and proved that everyone could become successful by understanding the nitty-gritty of stock trading.
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